- Net earnings attributable to shareholders of the Corporation ("net earnings") were
$757 .0 million or$0 .68 per diluted share for the second quarter of fiscal 2021 compared with$578 .6 million or$0.51 per diluted share for the second quarter of fiscal 2020. Adjusted net earnings were approximately$735 .0 million1 compared with$569.0 million 1 for the second quarter of fiscal 2020. Adjusted net earnings per share on a diluted basis were$0.66 1, representing an increase of 32.0% from$0.50 1 for the corresponding quarter of last year. - The COVID-19 pandemic continues to have a meaningful impact on the Corporation's quarterly financial results. Traffic remained soft throughout its network due to ongoing restrictive social measures and continued work from home trends across the various geographies in which it operates. From a merchandise perspective, sales benefited from consolidation of trips, new shopping options and diversified product offerings. From a fuel perspective, volumes improved compared to the prior quarter, particularly in
Europe which benefited from favorable summer weather, but remained challenged by work from home trends and evolving local restrictions, while fuel margins remained healthy. - Total merchandise and service revenues of
$3.8 billion , an increase of 6.3%. Same-store merchandise revenues increased 4.4% in theU.S. , 8.6% inEurope , and 11.4% inCanada . - Merchandise and service gross margin increased 0.1% in the
U.S. to 34.0%, while it decreased 1.1% to 40.2% inEurope , negatively impacted by product mix, and remained steady inCanada at 32.6%. - Same-store road transportation fuel volume decreased 15.5% in the
U.S. , 4.5% inEurope , and 11.8% inCanada . - Road transportation fuel gross margin increased by 9.19¢ per gallon in the
U.S. to 37.48¢ per gallon, by US 2.76¢ per liter inEurope to US 11.10¢ per liter, and by CA 2.16¢ per liter inCanada to CA 10.05¢ per liter. - Normalized operating, selling, administrative and general expenses declined 0.8% as rigorous cost control more than compensated for the additional COVID-19 related expenses.
- Subsequent to the end of the quarter, the Corporation entered into an agreement to acquire all the issued and outstanding shares of
Convenience Retail Asia (BVI) Limited for approximately$360 .0 million. - The Corporation's cash position is stronger than ever, with access to approximately
$6 .0 billion through its available cash and revolving unsecured operating credit facility. Its leverage ratio2 stood at 1.13 : 1, on a pro forma basis. - 25.0% increase of the quarterly dividend, from CA 7.00¢ to CA 8.75¢.
- The Corporation announced the renewal of its share repurchase program which will allow it to repurchase up to 4.0% of the public float of its Class B subordinate voting shares.
- Return on capital employed2 stood at 17.3%, on a pro forma basis.
LAVAL, QC,
"Across our global network, we had a strong second quarter, both in our stores and on our forecourts, even with the continuing impact of COVID-19. New customers and associated share gains since the start of the pandemic have continued as consumers take advantage of the convenience and proximity of our locations. This led to solid same-store sales growth of 4.4% in the
"We continue to be very pleased with developments in our food program, which is the biggest project ever undertaken by the organization. In the
___________________________
1 | Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. |
2 | Please refer to the section "Summary Analysis of Consolidated Results for the Second Quarter and First Half-year of Fiscal 2021" of this press release for additional information on these performance measures not defined by IFRS. |
Significant Items of the Second Quarter of Fiscal 2021
- The COVID-19 pandemic continues to have a meaningful impact on our quarterly financial results. Traffic remained soft throughout our network due to ongoing restrictive social measures and continued work from home trends across the various geographies in which we operate. The impact of lower traffic on the merchandise sales was however more than offset by an increase in the average basket size as consumers consolidated their trips and took advantage of new shopping options and diversified product offerings. From a fuel perspective, volumes improved compared to the prior quarter, particularly in
Europe which benefited from favorable summer weather, but remained challenged by work from home trends and evolving local restrictions, while fuel margins remained healthy. Lastly, from an operating expense perspective, the initiatives implemented across our network to reduce our controllable expenses had a favorable impact while we continued to promote and support the wellness of our employees and customers. - The terms and conditions of our investments in Fire & Flower Holdings Corp. were amended mainly to modify the maturity and expiry dates of the financial instruments, as well as their respective conversion and exercise price to a lower strike price or to a market-based price. The amendments also gave rise to a commitment from
Couche-Tard to exercise a portion of the common share purchase warrants for an amount of CA $19.0 million, no later thanDecember 31, 2020 , of which CA $10.3 million ($7 .8 million) was exercised during the second quarter. - We disposed of a property located in
Toronto, Canada , for a cash consideration of$54 .7 million and recognized to earnings a gain on disposal of$40 .9 million. - We fully repaid, at maturity, our CA
$300.0 million ($227 .1 million) Canadian-dollar-denominated senior unsecured notes issued onAugust 21, 2013 . - On
November 24, 2020 , subsequent to the end of the quarter, theToronto Stock Exchange approved the renewal of our share repurchase program which will allow us to repurchase up to 4.0% of the public float of our Class B subordinate voting shares.
Changes in our Network during the Second Quarter of Fiscal 2021
- We closed the sixth and final transaction of the
December 2018 asset exchange agreement with CrossAmerica Partners LP ("CAPL"). In this sixth transaction, we transferred 24 Circle KU.S. stores for a total value of approximately$20 .0 million. In exchange, CAPL transferred the real estate for 4 properties of an equivalent value. - We acquired 10 company-operated stores from
Wadsworth Oil Company of Clanton, Inc. , all located inAlabama , withinthe United States . We settled this transaction using our available cash and existing credit facilities. - We acquired one company-operated store, reaching a total of two single-site acquisitions since the beginning of fiscal year 2021.
- We completed the construction of 13 stores and the relocation or reconstruction of 1 store, reaching a total of 38 stores since the beginning of fiscal year 2021. As of October 11, 2020, another 51 stores were under construction and should open in the upcoming quarters.
- On
November 5, 2020 , subsequent to the end of the quarter, we entered into an agreement to acquire all the issued and outstanding shares ofConvenience Retail Asia (BVI) Limited ("Circle K HK") for a purchase price of HK $2.8 billion, or approximately$360 .0 million. Circle K HK, a subsidiary of Convenience Retail Asia Limited, operates a network of Circle K-licensed convenience stores, with 340 company-operated stores in Hong Kong and 33 franchised stores inMacau . The transaction is still subject to Convenience Retail Asia Limited shareholders' approval and we expect it to close before the end of calendar year 2020. - On
November 12, 2020 , subsequent to the end of the quarter, we acquired seven company-operated stores fromPride C-Stores Inc. , all located inIndiana , withinthe United States . We settled this transaction using our available cash and existing credit facilities.
Summary of changes in our store network
The following table presents certain information regarding changes in our store network over the 12-week period ended
12-week period ended | |||||||||
Type of site | Company- | CODO | DODO | Franchised and | Total | ||||
Number of sites, beginning of period | 9,647 | 435 | 662 | 1,244 | 11,988 | ||||
Acquisitions | 11 | — | — | 3 | 14 | ||||
Openings / constructions / additions | 13 | 1 | 9 | 16 | 39 | ||||
Closures / disposals / withdrawals | (40) | (4) | (5) | (9) | (58) | ||||
Store conversion | 2 | (26) | 24 | — | — | ||||
Number of sites, end of period | 9,633 | 406 | 690 | 1,254 | 11,983 | ||||
2,221 | |||||||||
Total network | 14,204 | ||||||||
Number of automated fuel stations included in the period-end figures | 986 | — | 9 | — | 995 |
Exchange Rate Data
We use the US dollar as our reporting currency, which provides more relevant information given the predominance of our operations in
The following table sets forth information about exchange rates based upon closing rates expressed as US dollars per comparative currency unit:
12-week periods ended | 24-week periods ended | |||
Average for period | ||||
Canadian dollar | 0.7541 | 0.7547 | 0.7416 | 0.7531 |
Norwegian krone | 0.1101 | 0.1115 | 0.1064 | 0.1134 |
Swedish krone | 0.1136 | 0.1032 | 0.1097 | 0.1044 |
Danish krone | 0.1582 | 0.1482 | 0.1538 | 0.1494 |
Zloty | 0.2653 | 0.2551 | 0.2568 | 0.2589 |
Euro | 1.1777 | 1.1063 | 1.1453 | 1.1150 |
Ruble | 0.0134 | 0.0154 | 0.0137 | 0.0155 |
Summary Analysis of Consolidated Results for the Second Quarter and First Half-year of Fiscal 2021
The following table highlights certain information regarding our operations for the 12 and 24-week periods ended
12-week periods ended | 24-week periods ended | |||||
(in millions of US dollars, unless otherwise stated) |
|
| Variation % |
|
| Variation |
Statement of Operations Data: | ||||||
Merchandise and service revenues(1): | ||||||
2,736.4 | 2,629.8 | 4.1 | 5,587.8 | 5,287.6 | 5.7 | |
394.6 | 331.3 | 19.1 | 737.8 | 684.4 | 7.8 | |
629.8 | 568.4 | 10.8 | 1,293.0 | 1,144.0 | 13.0 | |
CAPL | — | 9.8 | (100.0) | — | 29.6 | (100.0) |
Elimination of intercompany transactions with CAPL | — | (0.3) | (100.0) | — | (0.8) | (100.0) |
Total merchandise and service revenues | 3,760.8 | 3,539.0 | 6.3 | 7,618.6 | 7,144.8 | 6.6 |
Road transportation fuel revenues: | ||||||
4,438.3 | 6,519.0 | (31.9) | 8,344.3 | 13,320.5 | (37.4) | |
1,496.2 | 1,876.5 | (20.3) | 2,678.6 | 3,796.3 | (29.4) | |
875.7 | 1,130.8 | (22.6) | 1,552.7 | 2,332.2 | (33.4) | |
CAPL | — | 530.1 | (100.0) | — | 1,097.5 | (100.0) |
Elimination of intercompany transactions with CAPL | — | (116.1) | (100.0) | — | (237.5) | (100.0) |
Total road transportation fuel revenues | 6,810.2 | 9,940.3 | (31.5) | 12,575.6 | 20,309.0 | (38.1) |
Other revenues(2): | ||||||
9.5 | 8.1 | 17.3 | 17.0 | 15.0 | 13.3 | |
69.5 | 161.8 | (57.0) | 144.7 | 316.9 | (54.3) | |
5.4 | 5.3 | 1.9 | 9.3 | 10.1 | (7.9) | |
CAPL | — | 27.0 | (100.0) | — | 52.8 | (100.0) |
Elimination of intercompany transactions with CAPL | — | (3.5) | (100.0) | — | (7.6) | (100.0) |
Total other revenues | 84.4 | 198.7 | (57.5) | 171.0 | 387.2 | (55.8) |
Total revenues | 10,655.4 | 13,678.0 | (22.1) | 20,365.2 | 27,841.0 | (26.9) |
Merchandise and service gross profit(1): | ||||||
931.5 | 891.8 | 4.5 | 1,919.8 | 1,796.7 | 6.9 | |
158.6 | 136.9 | 15.9 | 297.8 | 283.4 | 5.1 | |
205.1 | 185.1 | 10.8 | 415.6 | 374.6 | 10.9 | |
CAPL | — | 2.2 | (100.0) | — | 6.8 | (100.0) |
Elimination of intercompany transactions with CAPL | — | (0.3) | (100.0) | — | (0.8) | (100.0) |
Total merchandise and service gross profit | 1,295.2 | 1,215.7 | 6.5 | 2,633.2 | 2,460.7 | 7.0 |
Road transportation fuel gross profit: | ||||||
767.4 | 698.4 | 9.9 | 1,579.9 | 1,370.9 | 15.2 | |
283.2 | 226.2 | 25.2 | 519.7 | 448.4 | 15.9 | |
97.3 | 86.4 | 12.6 | 179.0 | 167.9 | 6.6 | |
CAPL | — | 23.9 | (100.0) | — | 47.0 | (100.0) |
Total road transportation fuel gross profit | 1,147.9 | 1,034.9 | 10.9 | 2,278.6 | 2,034.2 | 12.0 |
Other revenues gross profit(2): | ||||||
9.5 | 8.1 | 17.3 | 17.0 | 15.0 | 13.3 | |
27.4 | 31.9 | (14.1) | 58.3 | 63.2 | (7.8) | |
5.4 | 5.2 | 3.8 | 9.3 | 10.0 | (7.0) | |
CAPL | — | 27.0 | (100.0) | — | 52.8 | (100.0) |
Elimination of intercompany transactions with CAPL | — | (3.5) | (100.0) | — | (7.6) | (100.0) |
Total other revenues gross profit | 42.3 | 68.7 | (38.4) | 84.6 | 133.4 | (36.6) |
Total gross profit | 2,485.4 | 2,319.3 | 7.2 | 4,996.4 | 4,628.3 | 8.0 |
Operating, selling, administrative and general expenses | ||||||
Excluding CAPL(11) | 1,194.4 | 1,214.8 | (1.7) | 2,365.4 | 2,439.1 | (3.0) |
CAPL | — | 18.3 | (100.0) | — | 38.5 | (100.0) |
Elimination of intercompany transactions with CAPL | — | (3.7) | (100.0) | — | (8.1) | (100.0) |
Total Operating, selling, administrative and general expenses | 1,194.4 | 1,229.4 | (2.8) | 2,365.4 | 2,469.5 | (4.2) |
(Gain) loss on disposal of property and equipment and other assets | (35.1) | 1.0 | (3,610.0) | (43.9) | 11.1 | (495.5) |
Depreciation, amortization and impairment | ||||||
Excluding CAPL | 305.8 | 292.9 | 4.4 | 595.3 | 577.1 | 3.2 |
CAPL | — | 23.3 | (100.0) | — | 46.2 | (100.0) |
Total depreciation, amortization and impairment | 305.8 | 316.2 | (3.3) | 595.3 | 623.3 | (4.5) |
Operating income | ||||||
Excluding CAPL | 1,020.3 | 763.0 | 33.7 | 2,079.6 | 1,506.0 | 38.1 |
CAPL | — | 9.8 | (100.0) | — | 18.7 | (100.0) |
Elimination of intercompany transactions with CAPL | — | (0.1) | (100.0) | — | (0.3) | (100.0) |
Total operating income | 1,020.3 | 772.7 | 32.0 | 2,079.6 | 1,524.4 | 36.4 |
Net financial expenses | 77.2 | 60.1 | 28.5 | 165.2 | 147.1 | 12.3 |
Net earnings including non-controlling interests | 757.0 | 579.4 | 30.7 | 1,534.1 | 1,115.4 | 37.5 |
Net (earnings) loss attributable to non-controlling interests | — | (0.8) | (100.0) | — | 2.0 | (100.0) |
Net earnings attributable to shareholders of the Corporation | 757.0 | 578.6 | 30.8 | 1,534.1 | 1,117.4 | 37.3 |
Per Share Data: | ||||||
Basic net earnings per share (dollars per share) | 0.68 | 0.51 | 33.3 | 1.38 | 0.99 | 39.4 |
Diluted net earnings per share (dollars per share) | 0.68 | 0.51 | 33.3 | 1.38 | 0.99 | 39.4 |
Adjusted diluted net earnings per share (dollars per share)(11) | 0.66 | 0.50 | 32.0 | 1.37 | 0.99 | 38.4 |
12-week periods ended | 24-week periods ended | |||||
(in millions of US dollars, unless otherwise stated) |
|
| Variation % |
|
| Variation % |
Other Operating Data – excluding CAPL: | ||||||
Merchandise and service gross margin(1): | ||||||
Consolidated | 34.4% | 34.4% | — | 34.6% | 34.5% | 0.1 |
34.0% | 33.9% | 0.1 | 34.4% | 34.0% | 0.4 | |
40.2% | 41.3% | (1.1) | 40.4% | 41.4% | (1.0) | |
32.6% | 32.6% | — | 32.1% | 32.7% | (0.6) | |
Growth of same-store merchandise revenues(3): | ||||||
4.4% | 3.2% | 6.1% | 2.9% | |||
8.6% | 3.3% | 6.0% | 2.0% | |||
11.4% | 2.1% | 15.7% | 1.2% | |||
Road transportation fuel gross margin: | ||||||
37.48 | 28.29 | 32.5 | 40.14 | 27.57 | 45.6 | |
11.10 | 8.34 | 33.1 | 10.82 | 8.39 | 29.0 | |
10.05 | 7.89 | 27.4 | 10.16 | 7.64 | 33.0 | |
Total volume of road transportation fuel sold: | ||||||
2,098.2 | 2,601.8 | (19.4) | 4,049.1 | 5,192.4 | (22.0) | |
2,550.7 | 2,713.2 | (6.0) | 4,801.2 | 5,346.8 | (10.2) | |
1,288.4 | 1,458.4 | (11.7) | 2,380.8 | 2,931.0 | (18.8) | |
(Decrease in) growth of same-store road transportation fuel volume: | ||||||
(15.5)% | 0.6% | (18.4)% | 0.6% | |||
(4.5)% | (0.6)% | (8.3)% | (1.1)% | |||
(11.8)% | 0.2% | (18.7)% | 0.3% |
(in millions of US dollars, unless otherwise stated) | As at | As at | Variation |
Balance Sheet Data: | |||
Total assets | 26,767.1 | 25,679.5 | 1,087.6 |
Interest-bearing debt (5) | 9,043.4 | 10,379.3 | (1,335.9) |
Equity | 11,919.9 | 10,066.6 | 1,853.3 |
Indebtedness Ratios(6): | |||
Net interest-bearing debt/total capitalization(5)(7) | 0.32 : 1 | 0.40 : 1 | |
Leverage ratio(8)(11) | 1.13 : 1 | 1.54 : 1 | |
Returns(6): | |||
Return on equity(9) | 25.7% | 24.8% | |
Return on capital employed(10) | 17.3% | 15.0% |
(1) | Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. |
(2) | Includes revenues from the rental of assets and from the sale of aviation fuel and energy for stationary engines. |
(3) | Does not include services and other revenues (as described in footnotes 1 and 2 above). Growth in |
(4) | For company-operated stores only. |
(5) | This measure is presented including the following balance sheet accounts: Current portion of long-term debt, Long-term debt, Current portion of lease liabilities, and Lease liabilities. |
(6) | Until |
(7) | This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by the addition of shareholders' equity and interest-bearing debt, net of cash and cash equivalents and temporary investments. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. We believe this measure is useful to investors and analysts. |
(8) | This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA for the last 52 weeks (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. We believe this measure is useful to investors and analysts. |
(9) | This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: net earnings for the last 52 weeks divided by average equity for the corresponding period. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. We believe this measure is useful to investors and analysts. |
(10) | This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: earnings before income taxes and interests for the last 52 weeks divided by average capital employed for the corresponding period. Capital employed represents total assets less short-term liabilities not bearing interests. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. We believe this measure is useful to investors and analysts. |
(11) | Prior figures such as Adjusted EBITDA, Adjusted net earnings, as well as Adjusted diluted net earnings per share have been updated to remove the restructuring costs. This adjustment had no impact on the leverage ratio as of |
Revenues
Our revenues were
For the first half-year of fiscal 2021, our revenues decreased by
Merchandise and service revenues
Total merchandise and service revenues for the second quarter of fiscal 2021 were
For the first half-year of fiscal 2021, the growth in merchandise and service revenues was
Road transportation fuel revenues
Total road transportation fuel revenues for the second quarter of fiscal 2021 were
For the first half-year of fiscal 2021, the road transportation fuel revenues decreased by
The following table shows the average selling price of road transportation fuel of our company-operated stores in our various markets for the last eight quarters, starting with the third quarter of the fiscal year ended
Quarter | 3rd | 4th | 1st | 2nd | Weighted | |
52-week period ended | ||||||
United States (US dollars per gallon) – excluding CAPL | 2.51 | 2.21 | 2.04 | 2.14 | 2.26 | |
73.92 | 60.95 | 56.89 | 63.19 | 64.91 | ||
103.47 | 88.78 | 86.89 | 92.00 | 94.34 | ||
52-week period ended | ||||||
United States (US dollars per gallon) – excluding CAPL | 2.42 | 2.51 | 2.66 | 2.55 | 2.53 | |
75.28 | 74.59 | 77.35 | 70.86 | 74.55 | ||
97.59 | 103.45 | 111.16 | 105.14 | 103.86 |
Other revenues
Total other revenues for the second quarter and first half-year of fiscal 2021 were
Gross profit
Our gross profit was
For the first half-year of fiscal 2021, our gross profit increased by
Merchandise and service gross profit
In the second quarter of fiscal 2021, our merchandise and service gross profit was
During the first half-year of fiscal 2021, our merchandise and service gross profit was
Road transportation fuel gross profit
In the second quarter of fiscal 2021, our road transportation fuel gross profit was
During the first half-year of fiscal 2021, our road transportation fuel gross profit was
The road transportation fuel gross margin of our company-operated stores in
(US cents per gallon) | |||||
Quarter | 3rd | 4th | 1st | 2nd | Weighted |
52-week period ended | |||||
Before deduction of expenses related to electronic payment modes | 27.04 | 46.88 | 42.99 | 37.48 | 37.10 |
Expenses related to electronic payment modes | 4.54 | 4.97 | 4.88 | 4.79 | 4.76 |
After deduction of expenses related to electronic payment modes | 22.50 | 41.91 | 38.11 | 32.69 | 32.34 |
52-week period ended | |||||
Before deduction of expenses related to electronic payment modes | 29.42 | 18.51 | 26.86 | 28.29 | 26.00 |
Expenses related to electronic payment modes | 4.31 | 4.40 | 4.70 | 4.63 | 4.50 |
After deduction of expenses related to electronic payment modes | 25.11 | 14.11 | 22.16 | 23.66 | 21.50 |
Generally, during normal economic cycles, road transportation fuel margins in the United States can be volatile from one quarter to another but have historically trended higher over longer periods. The historical trends for
Other revenues gross profit
In the second quarter and first half-year of fiscal 2021, other revenues gross profit was
Operating, selling, administrative and general expenses ("expenses")
For the second quarter and first half-year of fiscal 2021, expenses decreased by 2.8% and 4.2%, respectively, compared with the corresponding periods of fiscal 2020. If we exclude certain items that are not considered indicative of future trends, expenses decreased by 0.8% and 0.6%, respectively.
12-week period ended | 24-week period ended | |
Total variance, as reported | (2.8%) | (4.2%) |
Adjusted for: | ||
Decrease from lower electronic payment fees, excluding acquisitions | 1.6% | 2.0% |
Decrease from the disposal of our interests in CAPL | 1.5% | 1.6% |
Increase from the net impact of foreign exchange translation | (1.2%) | — |
Impact from the | 0.4% | 0.5% |
Increase from incremental expenses related to acquisitions | (0.3%) | (0.3%) |
Acquisition costs recognized to earnings of fiscal 2021 | (0.1%) | (0.2%) |
Acquisition costs recognized to earnings of fiscal 2020 | 0.1% | — |
Remaining variance | (0.8%) | (0.6%) |
We were able to achieve this decrease while maintaining the investments in our stores to support our strategic initiatives, even though we continue to see higher labor costs from minimum wage increases in certain regions, normal inflation and COVID-19 related expenses. This decrease was a result of cost and labor efficiencies, as well as rigorous work and activities initiated to streamline and minimize our controllable expenses. COVID-19 related expenses of the second quarter of fiscal 2021 include, but are not limited to, severance costs, additional cleaning and sanitizing supplies, as well as masks and gloves for our employees. For the first half-year of fiscal 2021, it also includes an emergency appreciation pay premium of
Earnings before interest, taxes, depreciation, amortization and impairment (EBITDA) and adjusted EBITDA
During the second quarter of fiscal 2021, EBITDA increased from
During the first half-year of fiscal 2021, EBITDA increased from
It should be noted that EBITDA and adjusted EBITDA are not performance measures defined by IFRS, but we, as well as investors and analysts, consider that those performance measures facilitate the evaluation of our ongoing operations and our ability to generate cash flows to fund our cash requirements, including our capital expenditures program and payment of dividends. Note that our definition of these measures may differ from the one used by other public corporations.
12-week periods ended | 24-week periods ended | |||
(in millions of US dollars) | ||||
Net earnings including non-controlling interests, as reported | 757.0 | 579.4 | 1,534.1 | 1,115.4 |
Add: | ||||
Income taxes | 193.6 | 139.7 | 396.3 | 275.0 |
Net financial expenses | 77.2 | 60.1 | 165.2 | 147.1 |
Depreciation, amortization and impairment | 305.8 | 316.2 | 595.3 | 623.3 |
EBITDA | 1,333.6 | 1,095.4 | 2,690.9 | 2,160.8 |
Adjusted for: | ||||
Gain on disposal of a property | (40.9) | — | (40.9) | — |
Acquisition costs | 1.2 | 0.8 | 5.1 | 1.0 |
EBITDA attributable to non-controlling interests | — | (25.8) | — | (50.6) |
Adjusted EBITDA | 1,293.9 | 1,070.4 | 2,655.1 | 2,111.2 |
Depreciation, amortization and impairment ("depreciation")
For the second quarter of fiscal 2021, our depreciation expense decreased by
For the first half-year of fiscal 2021, our depreciation expense decreased by
Net financial expenses
Net financial expenses for the second quarter of fiscal 2021 were
Net financial expenses for the first half-year of fiscal 2021 were
12-week periods ended | 24-week periods ended | |||
(in millions of US dollars) | ||||
Net financial expenses, as reported | 77.2 | 60.1 | 165.2 | 147.1 |
Adjusted for: | ||||
Net foreign exchange (loss) gain | (8.9) | 11.8 | (27.3) | 5.3 |
CAPL's financial expenses | — | (9.5) | — | (20.8) |
Net financial expenses excluding items above | 68.3 | 62.4 | 137.9 | 131.6 |
Income taxes
The income tax rate for the second quarter of fiscal 2021 was 20.4% compared with 19.4% for the corresponding period of fiscal 2020. Excluding the item shown in the table below, the income tax rate for the second quarter of fiscal 2020 would have been 19.5%.
The income tax rate for the first half-year of fiscal 2021 was 20.5% compared with 19.8% for the first half-year of fiscal 2020. Excluding the item shown in the table below, the income tax rate would have been 19.6% for the first half-year of fiscal 2020. The increase for both the second quarter and first half-year is mainly stemming from the impact of a different mix in our earnings across the various jurisdictions in which we operate.
12-week periods ended | 24-week periods ended | |||
Income tax rate, as reported | 20.4% | 19.4% | 20.5% | 19.8% |
Adjusted for: | ||||
Income tax benefit (expense) following the | — | 0.1% | — | (0.2)% |
Net income tax rate excluding items above | 20.4% | 19.5% | 20.5% | 19.6% |
Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")
Net earnings for the second quarter of fiscal 2021 were
Excluding the items shown in the table below from net earnings of the second quarter of fiscal 2021 and fiscal 2020, adjusted net earnings for the second quarter of fiscal 2021 were approximately
For the first half-year of fiscal 2021, net earnings were
Excluding the items shown in the table below from net earnings of the first half-year of fiscal 2021 and fiscal 2020, adjusted net earnings for the first half-year of fiscal 2021 were approximately
The table below reconciles reported net earnings to adjusted net earnings:
12-week periods ended | 24-week periods ended | |||
(in millions of US dollars) | ||||
Net earnings attributable to shareholders of the Corporation, as reported | 757.0 | 578.6 | 1,534.1 | 1,117.4 |
Adjusted for: | ||||
Gain on disposal of a property | (40.9) | — | (40.9) | — |
Net foreign exchange loss (gain) | 8.9 | (11.8) | 27.3 | (5.3) |
Acquisition costs | 1.2 | 0.8 | 5.1 | 1.0 |
Income tax (benefit) expense following the | — | (0.7) | — | 2.7 |
Tax impact of the items above and rounding | 8.8 | 2.1 | 4.4 | 1.2 |
Adjusted net earnings attributable to shareholders of the Corporation | 735.0 | 569.0 | 1,530.0 | 1,117.0 |
It should be noted that adjusted net earnings and adjusted diluted net earnings per share are not performance measures defined by IFRS, but we, as well as investors and analysts, consider these measures useful for evaluating the underlying performance of our operations on a comparable basis. Note that our definition of these measures may differ from the one used by other public corporations.
Dividends
During its
During the same meeting, the Board of Directors declared a quarterly dividend of CA 8.75¢ per share for the second quarter of fiscal 2021 to shareholders on record as at
Profile
As of
In
In addition, under licensing agreements, more than 2,220 stores are operated under the Circle K banner in 15 other countries and territories (
For more information on
The statements set forth in this press release, which describes
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